Unions ready to fight over state's pay offer

The State Government faces an industrial relations deadlock on at least three fronts, with teachers, nurses and prison guards demanding wage rises well above its offer of 3 per cent a year.

State school teachers will stop work on March 3. For the first time, Catholic primary and secondary school teachers will join them in an industrial action campaign, rallying outside Parliament.

Last week Treasurer John Brumby appeared to signal the possibility of higher pay rises, suggesting they could be offset by productivity improvements. His office has not ruled out cuts in teacher numbers.

Unions representing the three sectors are sceptical of Mr Brumby's comments on productivity improvements, refusing to compromise on their current work conditions.

"He's trying to suggest we return to the 1950s in terms and conditions, to get pay rises," said Karen Batt, secretary of the Community and Public Sector Union which represents prison guards. "Productivity improvements have already been achieved." Prison guards returned to regular duties on Friday after a series of work bans had resulted in prisoners being confined to their cells for 23 hours a day.

The union is seeking a 6 per cent per annum wage rise. Ms Batt said pay talks would resume tomorrow.

The Government has attempted to cap pay rises at 2.25 per cent a year, with an additional 0.75 per cent offered for "service improvements". Last week media reports quoted Mr Brumby saying the Government's policy did not rule out wage rises of 5, 6 or 7 per cent, to be offset by productivity improvements.

The Victorian branch president of the Australian Education Union, Mary Bluett, said: "Brumby has said productivity improvements wouldn't mean fewer teachers, so we're at a bit of a loss as to what he means.

"If productivity means doing something to generate money to pay for wage rises, then you have to do things like cutting staff numbers... unless he's going to close schools and sell off the land, there's no potential for those sorts of productivity increases. If he's talking about literacy and numeracy improvements, we are going ahead with that. But those sort of outcomes don't save money, they cost money."

The union has demanded a 10 per cent per annum pay rise. "Something in between might be reasonable," said Ms Bluett. "Two-and-a-quarter per cent, given the 5 per cent offered to teachers in NSW, is clearly far from the market level of today."

Robert Burrows, senior industrial officer of the Australian Nursing Federation, said he "did not expect a great offer that members will accept" from the Government when its current agreement expires on March 31.

Describing Mr Brumby's comments about productivity improvements as "a bit of doublespeak", Mr Burrows said the union had already enacted several improvements.

"The 'no-lift' policy has resulted in a massive reduction in WorkCover claims. A decrease in the use of agency staff has saved hospitals millions. Whenever we've raised these issues, the Treasurer says 'that's all in the past'."

A spokeswoman for Mr Brumby confirmed the Government's wage policy offered an annual rise of 2.25 per cent in line with inflation, with 0.75 per cent for service delivery improvements. "Anything above that has to be totally productivity cost offset. We will not deviate from that policy," she said.

She would not comment on individual portfolio negotiations but said Mr Brumby had made no guarantee that teachers numbers would not be cut.

A spokesman for Education Minister Lynne Kosky said the negotiations were confidential. "There's already a factor for productivity in there and it's up to the union to find those productivity savings," he said.

Shadow treasurer Robert Clark said Mr Brumby's comments about higher wage rises had raised unions' expectations. "Brumby appears to have signalled that he is prepared to grant massive pay increases for public-sector workers that could blow out the state's wages bill by more than $900 million."

Mr Brumby's spokeswoman said: "Our policy on public sector wage outcomes has not changed. We made this clear at budget time last year."